RATEPAYERS on Anglesey have been warned they could face a 5% hike in council tax just to protect vital services.

Commissioners have adopted a Budget Statement which sets out the proposed budget for the Isle of Anglesey for 2012-13.

Internal cost reductions and efficiency savings of around £3.72m have already been identified for 2012-13.

Despite that, Commissioners anticipate that the Council will still need to consider increasing Council Tax by up to 5%, simply in order to meet the statutory requirement to set a balanced budget and to protect vital services.

The proposals will be discussed by elected members at a meeting of the Council on December 8.

The publication of the Commissioners’ Budget Statement is the first stage in a comprehensive consultation process which will run through to March 2012, when the Council formally sets its Budget and Council Tax.

The Welsh Government has indicated a provisional settlement of £92.3m for Anglesey for 2012 -13.

Byron Davies, the Commissioner with responsibility for finance said: “The current economic climate has resulted in severe reductions in public sector spending being imposed by central government and every Council is facing difficult financial challenges. However, here on Anglesey, the challenges we face are greater than most. Successive budgets have historically been too low and this has meant that the Council has not invested in the kind of infrastructure which would enable it to consistently deliver modern, efficient services which are fit for purpose.”